In most states, one agency has responsibility for Medicaid enrollees’ physical health services, and at least one other agency has responsibility for their behavioral health services. Apportioning responsibility for the physical and behavioral health of Medicaid beneficiaries into different agencies inevitably leads to different—and sometimes misaligned—policy goals, program priorities and purchasing strategies, thereby impeding the delivery of integrated care.

In a new issue brief for The Commonwealth Fund, Manatt Health describes the rationale, process and impact of Arizona’s 2015 consolidation of its physical and behavioral health services agencies into its Medicaid agency. In focusing on Arizona’s experience, Manatt Health seeks to explore whether agency integration facilitates care integration and, if so, is it worth the effort.